Page 14 - Villas at Savona Close-out Manual

ARTICLE 9. RESOLUTION OF DISPUTES

9.1 BINDING ARBITRATION. In the event of any claim or dispute between the parties, the parties
agree that such claim or dispute shall be decided by an expedited form of binding arbitration in
accordance with the then existing rules of the American Arbitration Association. Such arbitration
shall be held in the county in which the Project resides. The arbitrator's judgment shall be binding
upon both parties. Neither party shall be entitled to recover special or punitive damages. Both parties
agree to begin such arbitration within a maximum of three (3) months from either party's request to
commence arbitration.

9.2 ATTORNEY'S FEES. The prevailing party in arbitration, as found by the Arbitrator upon specific
findings as to which party is the prevailing party, shall be entitled to recover the damages awarded
and all reasonable expenses incurred by the prevailing party, including reasonable attorney's fees,
upon submittal of cost and fee bills to the Arbitrator and the Arbitrator issuing an order thereon.

ARTICLE 10. INSURANCE

10.1 INSURANCES PROVIDED BY THE ARCM. The ARCM shall provide worker's compensation
and general liability insurance and shall name the ASSOCIATION as an additional insured on the
general liability policy. The ARCM shall additionally provide professional liability (“errors and
omissions”) insurance. Relevant liability policy limits currently maintained by the ARCM are:
General Liability $2,000,000 general aggregate
Professional Liability $1,000,000 aggregate
Automobile Liability $1,000,000 combined single limit
$4,000,000 total
The cost of the general liability insurance shall be part of the ARCM’S reconstruction Schedule of
Values for all reconstruction Work. In the event that the ARCM’S Work extends beyond 12/31/2015,
and the insurance rates payable by the ARCM are increased or decreased, the Schedule of Values or
Billing Rates for appropriate phases of Work shall be adjusted accordingly.

ARTICLE 11. OTHER TERMS AND CONDITIONS

11.1 PERMITS AND FEES. The ASSOCIATION shall pay for all required permits, fees and
processing costs. Such costs are not included in the Contract Amount. Processing time to acquire
said permits and or related design required by the governing authority, if any, shall be charged per the
Time and Materials (T&M) rates stated within this Agreement.

11.2 TIME. Time is of the essence of this Agreement as to both parties.

11.3 NOTICES. Official notices to either party to this Agreement shall be in writing, and shall be
considered received five (5) days from the date sent by First Class Mail and/or Certified Return
Receipt or by facsimile transmission or electronic mail with delivery presumed upon transmission if
sent during normal business hours or the following business day if sent after hours, weekend or
holiday.

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2015 JWC ARCM POST LIT License ROC 190300 KB-1